Android Smartphones To Reach 1.1 Billion Units in 2013

By Wolfgang Gruener
published

By the end of next year, Google's Android will have been sold on more than twice the number of smartphones than Apple will have sold iPhones.

According to IHS, cumulative Android phone shipments will top 1 billion next year when the OS is forecast to be installed on 451 million phones that are predicted to be sold. That number is up from a forecast 357 million this year. In comparison, the iPhone will hit 527 million this year and will not arrive at 1 billion until 2015, IHS said. Meanwhile, Android is expected to approach top 2.2 billion in 2015, with annual shipments climbing to 599 million units.

“The Androids are taking over the world of smartphones,” said Daniel Gleeson, mobile analyst for IHS. “We expect the Android operating system to become the first to reach the milestone of 1 billion shipments during its lifetime. For Google, this accomplishment highlights the success of its growth strategy for Android, which is based on providing the operating system as an open-source platform to third-party smartphone brands free of charge. Google hopes to make significant revenues from mobile advertisements and other services. Such an open-source model means that Google offers handset makers the ability to customize Android easily, and by also eliminating licensing fees, is greatly encouraging adoption among smartphone handset manufacturers.”

In contrast, we should remember that, while Google relies on quickly rising shipment numbers to be able to exploit its advertising opportunity, Apple has a more diversified revenue opportunity and makes a killing on hardware sales. Rather than comparing Google and Apple (76 percent of the market goes to these two platforms in 2012, IHS said), the much more interesting question will be what is left for Microsoft, RIM, Linux, Bada and Mozilla. A forecast until 2016 may be a bit difficult to defend until we know what effect Windows Phone 8, Firefox OS and the new Blackberry will have. It is unlikely that the smartphone world will stand still.

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Wolfgang Gruener
22 Comments Comment from the forums
  • Thunderfox
    They can't do that. Apple has patented the word Billion.
    Reply
  • clubsaucekiller
    A thousand different phones and they've only sold twice as many. "Taking over", what a joke.
    Reply
  • freggo
    That's ok, it is mostly used in the USA.
    In Europe we use "Milliarde" instead !

    A Billion in Europe would be a USA Trillion !

    Reply
  • freggo
    clubsaucekillerA thousand different phones and they've only sold twice as many. "Taking over", what a joke.
    It shows that Android is made for specific customer needs (Customer first approach).
    Apple makes 'one fits all'. Lower cost manufacturing and warehousing but inflexible for the user. That's the "Corporate approach" !


    Reply
  • jay2tall
    People generally like to be controlled. Apple is control, so a lot of people like it. Plus all that extra money you spend on Apple products, guess what? It all goes to marketing. And guess what works on a majority of people?
    Reply
  • dameon51
    otacon72If the iPhone doesn't take a customer first approach why has it sold almost as many units with 4 models compared to the dozens of Android models? I have no love for Apple but your logic is ridiculous.Branding
    Reply
  • skyjogger
    otacon72Actually $1B EU would be $1.29B US, your conversion is....slightly off.it has nothing to do with conversion, having 1billion at 1,000,000,000 is an American thing, that's only one thousand million a proper billion is one million million (1,000,000,000,000), it makes much more sense
    Reply
  • blazorthon
    otacon72If the iPhone doesn't take a customer first approach why has it sold almost as many units with 4 models compared to the dozens of Android models? I have no love for Apple but your logic is ridiculous.
    Marketing and fanboyism. Never underestimate the iSheep's gratuitous spending. Non-Apple fanboys are a minority within Apple's customers unlike with Android and Windows Phone where Windows Phone makers and Android makers have to rely on diversity to target the wider audiences of people who put at least a little thought into their purchase. Why do you think that Android managed to overtake iPhone even though it's been in serious competition for less time?
    Reply
  • subaru41
    clubsaucekillerA thousand different phones and they've only sold twice as many. "Taking over", what a joke.So you are saying if Apple sold two new phones there sales would double? you are making no sense. If Apple had several models tow choose from it doesn't necessarily mean they will sell more phones. Maybe should you should go back to school and learn about economics - supply and demand.
    Reply
  • clubsaucekiller
    blazorthonMarketing and fanboyism. Never underestimate the iSheep's gratuitous spending. Non-Apple fanboys are a minority within Apple's customers unlike with Android and Windows Phone where Windows Phone makers and Android makers have to rely on diversity to target the wider audiences of people who put at least a little thought into their purchase. Why do you think that Android managed to overtake iPhone even though it's been in serious competition for less time?The people who buy Galaxy SIII's and that latest Android flavor of the month "flagship" are in the minority. Most people who buy Android phones are the ones who put zero thought into their purchase and only look at the price. The inferior quality inherent in Android phones is what allows drastic undercutting.
    Reply